Maccabi Tel Aviv Ownership Saga Heads to Court Amidst Rights Disputes

The ownership of Israeli basketball club Maccabi Tel Aviv is embroiled in a complex legal battle following businessman Richard Daetz's decision to exercise his right of first refusal to block the sale of the Rekanati family's shares. Daetz, who currently holds 17.5% of the club's stock, announced he would not allow the sale of the Rekanati family's 29% stake to Jason Levien's American company.

Daetz criticized the proposed sale, citing concerns about the buyer's lack of connection to the club and experience in European basketball, stating his decision was made to protect Maccabi. This move could significantly alter the ownership structure, potentially making Daetz the majority shareholder with up to 55.5% or even 62% of the club's shares.

The saga began six months ago when the Federman family sold half their shares to Eyal Shtilman, CEO of the team's main sponsor. The Rekanati family then exercised their right of first refusal, purchasing those shares for $50 million and preventing that initial transfer. Subsequently, the Rekanati family announced their intention to sell their own stake to Levien's company.

Sources close to the club anticipate the dispute will likely be settled in court, warning that allowing such actions could lead to a chaotic situation where every shareholder exercises their right of refusal on any transaction. The deadline for exercising rights of first refusal on the Rekanati shares is set to expire soon, leaving the possibility for Shimon Mizrahi or Ben Ashkenazi to also intervene.

Ben Ashkenazi, who previously held 10% of the shares, has seen his stake diluted, and Levien's company also held a portion of Ashkenazi's shares. The situation remains fluid as the deadline approaches.